MLO MOCK EXAM QUESTIONS WITH 100% VERIFIED
SOLUTIONS ALREADY PASSED!!
1. A mortgage loan originator must provide the Loan Estimate to the consumer:
(a) No later than the third business day after the date of the consumer's application.
(b) No later than the three-business day before consummation of the transaction.
(c) No later than the third business day after the creditor receives the consumer's
application for a mortgage loan.
(d) At the first substantial meeting with the consumer. - (answers)(c) No later than the third
business day after the creditor receives the consumer's application for a mortgage loan.
2. The Gramm-Leach-Bliley Act requires financial institutions to provide consumers with a
notice of their information-sharing policies. Which of the following is not an acceptable
means of providing the required privacy notice?
(a) Mail
(b) Posting notice in on an office wall
(c) Email
(d) Fax - (answers)(b) Posting notice in on an office wall
3. After a loan closing, funds are disbursed. When are the funds disbursed for an owner-
occupied residential refinance?
(a) After the three business-day rescission period.
(b) At the time of the loan closing.
(c) Five business days after the closing.
(d) After the three-day rescission period. - (answers)(a) After the three business-day
rescission period.
4. Violations of Section 8's anti-kickback, referral fees, and unearned fees provisions of
RESPA are subject to criminal and civil penalties. In a criminal case, a person who violates
Section 8 may be fined up and imprisoned:
(a) Up to $5,000 and up to 1 year in prison.
(b) Up to $10,000 and up to 1 year in prison.
,(c) Up to $10,000 and up to 2-99 years in prison.
(d) Up to $1,000,000 and up to 30 years in prison. - (answers)(b) Up to $10,000 and up to 1
year in prison.
5. Which of the following allows a prepayment penalty during the first three years after the
loan is consummated?
(a) Qualified Mortgage Loan
(b) FHA Mortgage Loan
(c) Higher-Priced Mortgage Loan
(d) Home Ownership and Equity Protection Act Loan - (answers)(d) Home Ownership and
Equity Protection Act Loan
6. The URLA divides the application into five different forms. Which of the following is not
one of the five forms that make up the URLA?
(a) Uniform Residential Loan Application-Additional Borrower
(b) Uniform Residential Loan Application-Continuation Sheet
(c) Uniform Residential Loan Application-Information for Government Monitoring Purposes
(d) Uniform Residential Loan Application-Unmarried Addendum - (answers)(c) Uniform
Residential Loan Application-Information for Government Monitoring Purposes
7. Which is NOT a purpose for the Mortgage Servicing Disclosure Statement?
(a) That the consumer will be given advanced notice before a transfer occurs
(b) To inform the consumer that they are applying for a mortgage loan covered by RESPA
(c) To inform the consumer of the likelihood that the mortgage could be sold in the
secondary market
(d) To inform the consumer of the likelihood that the servicing of the mortgage will be sold,
transferred, or assigned - (answers)(c) To inform the consumer of the likelihood that the
mortgage could be sold in the secondary market
,8. A Latina applies to a mortgage company for a home loan. She is refused based on the
neighborhood's reputation for a high number of foreclosures. This is an example of what
illegal practice?
(a) Blockbusting
(b) Puffing
(c) Redlining
(d) Steering - (answers)(c) Redlining
9. As defined by the S.A.F.E. Mortgage Licensing Act of 2008, all the following mortgage
products are considered non-traditional mortgage products except:
(a) Balloon Mortgages.
(b) Adjustable-Rate Mortgages.
(c) FHA Mortgages.
(d) 30-year Fixed-Rate Mortgages. - (answers)(d) 30-year Fixed-Rate Mortgages
10. Which Act amended the Truth in Lending Act, establishing disclosure requirements and
prohibiting equity stripping and other abusive practices in connection with "high-cost"
mortgages?
(a) Community Reinvestment Act (CRA)
(b) Home Mortgage Disclosure Act (HMDA)
(c) Home Ownership and Equity Protection Act (HOEPA)
(d) Homeowners Protection Act (HPA) - (answers)(c) Home Ownership and Equity Protection
Act (HOEPA)
11. The type of mortgage that provides an elderly borrower with a monthly check instead of
the borrower paying a monthly payment is known as:
(a) Home equity line of credit.
(b) Graduated payment mortgage.
(c) Nonconforming loan.
(d) Reverse mortgage. - (answers)(d) Reverse mortgage.
, 12. According to the Fair Credit Reporting Act, if adverse action is taken against a credit
applicant because of information on a credit report, the lender who used that report is
required to:
(a) Inform the applicant that the reporting agency was the decision-maker and to dispute
the decision in writing at the address provided.
(b) Provide a copy of the credit report to the consumer.
(c) Provide to the consumer the name, address, and telephone number of the consumer
reporting agency that furnished the report.
(d) Revise the inaccuracy in the report. - (answers)(c) Provide to the consumer the name,
address, and telephone number of the consumer reporting agency that furnished the report.
13. Lenders that generate mortgage loans may receive some degree of legal protection
against borrower Ability to Repay lawsuits. The level of protection they receive will depend
on the type of loan they make. What type of mortgage loan gives the lender the greatest
level of protection against borrower lawsuits?
(a) Rebuttable Presumption Qualified Mortgage Loan
(b) Safe Harbor Qualified Mortgage Loan
(c) SAFE Act Certified Mortgage Loan
(d) Un-restricted Ability-to-Repay loan - (answers)(b) Safe Harbor Qualified Mortgage Loan
14. In the promissory note, what gives the lender the right to charge the borrower a fee for
paying off the loan early?
(a) Acceleration clause
(b) Alienation clause
(c) Due on sale clause
(d) Prepayment penalty. - (answers)(d) Prepayment penalty.
15. Which statement is correct?
(a) Regulation B is also known as the Equal Credit Opportunity Act.
(b) Regulation V is also known as the Home Mortgage Disclosure Act.
SOLUTIONS ALREADY PASSED!!
1. A mortgage loan originator must provide the Loan Estimate to the consumer:
(a) No later than the third business day after the date of the consumer's application.
(b) No later than the three-business day before consummation of the transaction.
(c) No later than the third business day after the creditor receives the consumer's
application for a mortgage loan.
(d) At the first substantial meeting with the consumer. - (answers)(c) No later than the third
business day after the creditor receives the consumer's application for a mortgage loan.
2. The Gramm-Leach-Bliley Act requires financial institutions to provide consumers with a
notice of their information-sharing policies. Which of the following is not an acceptable
means of providing the required privacy notice?
(a) Mail
(b) Posting notice in on an office wall
(c) Email
(d) Fax - (answers)(b) Posting notice in on an office wall
3. After a loan closing, funds are disbursed. When are the funds disbursed for an owner-
occupied residential refinance?
(a) After the three business-day rescission period.
(b) At the time of the loan closing.
(c) Five business days after the closing.
(d) After the three-day rescission period. - (answers)(a) After the three business-day
rescission period.
4. Violations of Section 8's anti-kickback, referral fees, and unearned fees provisions of
RESPA are subject to criminal and civil penalties. In a criminal case, a person who violates
Section 8 may be fined up and imprisoned:
(a) Up to $5,000 and up to 1 year in prison.
(b) Up to $10,000 and up to 1 year in prison.
,(c) Up to $10,000 and up to 2-99 years in prison.
(d) Up to $1,000,000 and up to 30 years in prison. - (answers)(b) Up to $10,000 and up to 1
year in prison.
5. Which of the following allows a prepayment penalty during the first three years after the
loan is consummated?
(a) Qualified Mortgage Loan
(b) FHA Mortgage Loan
(c) Higher-Priced Mortgage Loan
(d) Home Ownership and Equity Protection Act Loan - (answers)(d) Home Ownership and
Equity Protection Act Loan
6. The URLA divides the application into five different forms. Which of the following is not
one of the five forms that make up the URLA?
(a) Uniform Residential Loan Application-Additional Borrower
(b) Uniform Residential Loan Application-Continuation Sheet
(c) Uniform Residential Loan Application-Information for Government Monitoring Purposes
(d) Uniform Residential Loan Application-Unmarried Addendum - (answers)(c) Uniform
Residential Loan Application-Information for Government Monitoring Purposes
7. Which is NOT a purpose for the Mortgage Servicing Disclosure Statement?
(a) That the consumer will be given advanced notice before a transfer occurs
(b) To inform the consumer that they are applying for a mortgage loan covered by RESPA
(c) To inform the consumer of the likelihood that the mortgage could be sold in the
secondary market
(d) To inform the consumer of the likelihood that the servicing of the mortgage will be sold,
transferred, or assigned - (answers)(c) To inform the consumer of the likelihood that the
mortgage could be sold in the secondary market
,8. A Latina applies to a mortgage company for a home loan. She is refused based on the
neighborhood's reputation for a high number of foreclosures. This is an example of what
illegal practice?
(a) Blockbusting
(b) Puffing
(c) Redlining
(d) Steering - (answers)(c) Redlining
9. As defined by the S.A.F.E. Mortgage Licensing Act of 2008, all the following mortgage
products are considered non-traditional mortgage products except:
(a) Balloon Mortgages.
(b) Adjustable-Rate Mortgages.
(c) FHA Mortgages.
(d) 30-year Fixed-Rate Mortgages. - (answers)(d) 30-year Fixed-Rate Mortgages
10. Which Act amended the Truth in Lending Act, establishing disclosure requirements and
prohibiting equity stripping and other abusive practices in connection with "high-cost"
mortgages?
(a) Community Reinvestment Act (CRA)
(b) Home Mortgage Disclosure Act (HMDA)
(c) Home Ownership and Equity Protection Act (HOEPA)
(d) Homeowners Protection Act (HPA) - (answers)(c) Home Ownership and Equity Protection
Act (HOEPA)
11. The type of mortgage that provides an elderly borrower with a monthly check instead of
the borrower paying a monthly payment is known as:
(a) Home equity line of credit.
(b) Graduated payment mortgage.
(c) Nonconforming loan.
(d) Reverse mortgage. - (answers)(d) Reverse mortgage.
, 12. According to the Fair Credit Reporting Act, if adverse action is taken against a credit
applicant because of information on a credit report, the lender who used that report is
required to:
(a) Inform the applicant that the reporting agency was the decision-maker and to dispute
the decision in writing at the address provided.
(b) Provide a copy of the credit report to the consumer.
(c) Provide to the consumer the name, address, and telephone number of the consumer
reporting agency that furnished the report.
(d) Revise the inaccuracy in the report. - (answers)(c) Provide to the consumer the name,
address, and telephone number of the consumer reporting agency that furnished the report.
13. Lenders that generate mortgage loans may receive some degree of legal protection
against borrower Ability to Repay lawsuits. The level of protection they receive will depend
on the type of loan they make. What type of mortgage loan gives the lender the greatest
level of protection against borrower lawsuits?
(a) Rebuttable Presumption Qualified Mortgage Loan
(b) Safe Harbor Qualified Mortgage Loan
(c) SAFE Act Certified Mortgage Loan
(d) Un-restricted Ability-to-Repay loan - (answers)(b) Safe Harbor Qualified Mortgage Loan
14. In the promissory note, what gives the lender the right to charge the borrower a fee for
paying off the loan early?
(a) Acceleration clause
(b) Alienation clause
(c) Due on sale clause
(d) Prepayment penalty. - (answers)(d) Prepayment penalty.
15. Which statement is correct?
(a) Regulation B is also known as the Equal Credit Opportunity Act.
(b) Regulation V is also known as the Home Mortgage Disclosure Act.
